Star of defence and mining: 618% return in 5 years; check record date for stock split

Kolkata: BEML is PSU that operates under the Ministry of Defence but has its activities spread in three sectors -- defence, mining & construction, and railways. The BEML management has announced a stock split in 2:1 ratio and the record date for it is November 3, which happens to be the next trading day.

The above announcement means that each stock of face value of Rs 10 of BEML will be split into two shares. It will increase the number of shares in the market and help in more buying and selling of its shares. The market cap of the company is about Rs 18,527 crore. Around 3 pm on October 31, the BEML stock was trading at Rs 4,390.80, down 44.90 (or 1.01%).

BEML management has informed he stock exchange of the decision to split stocks. The decision was taken by the BEML board. The record date will be Monday, November 3, which happens to be the next trading day. The investors who are currently holding BEML shares will get the benefits of this stock split. The ex-date will also remain November 3, 2025, since the market now operates on a T+1 settlement cycle. This indication is clear: the shares will trade on the same day as the ex-date.

BEML has signed three agreements with the Dredging Corporation of India. The value of these MoUs is Rs 350 crore. One of the agreements is for the manufacture of five dredgers of different sizes. These will be fully manufactured in the country. Another agreement is for the supply of cable dredgers, long-range machines, and specialized equipment for dams and lakes. The third agreement is for the supply of spare parts, which will obviate the dependence on imports from other countries. BEML can boast of a robust work pipeline -- its order book has swelled from 11,872 crore in FY24 to Rs 14,610 crore in FY25.

The revenue of BEML declined marginally in Q1FY26. It was recorded as Rs 634 crore in Q1 FY25 but inched down to Rs 633.99 crore in Q1FY26. The losses in the books have shrunk too -- from Rs 70 crore to Rs 64 crore over the same period. On an annual scale, the revenue and profits have grown. Revenue has increased by 5.86% profits surged 35.56% over the past five years.

The company was set up in 1964. So far it has manufactured more than 9,350 defence vehicles, 18,000 rail coaches, 2,099 metro cars and tank engines. In the aerospace sector, BEML manufactures missile and fighter jet components. It has manufactured 33,830 machines and 29,100 engines and more than 1,400 units have been exported to 72 countries.